Private sector investments to spur growth

Vinod Nair –
Muscat, July 28 –

The Ministry of Health (MoH) launched the first phase of investment process last week, under which land plots will be allocated for investment in the sector.
In the first phase, four land parcels, including two in the Waljah area of Ruwi and one in Ghubra in Bausher, will be offered for investment to help raise funds for various services offered in the health sector.
“MoH believes the delivery of quality health services has become a major challenge for all countries due to high wages for medical experts and costly equipment,” the statement said.
The ministry said it seeks to explore new means for financing health services through several strategies, including partnership with the private sector in health service delivery, pharmaceutical industry and investment in existing health projects and properties.
According to Oman’s Health Vision 2050 document, there has been an average annual increase in recurrent expenditure of around 13.5 per cent between 2005 and 2012.
Salaries and allowances alone represent 73.5 per cent of the recurrent expenditure in Ministry of Health and it has shown an average annual increase of 15 per cent over the same period.
The increase in salaries is the result of rise in the numbers of health workers and the annual increase in salaries of existing workers.
There are a number of developments proposed in ‘Health Vision 2050’ that will require increased financial resources such as demands for a specialised health workforce, improvement in the social conditions of medical and paramedical staff, expansion of tertiary care, establishing medical cities, specialised primary healthcare, upgrading biomedical technologies and expansion and renovation of health services.